USDJPY Daily Analysis – July 12, 2023

The USDJPY currency pair has experienced a persistent decline, extending its downward move from 145.06 to a recent low of 139.30. This drop has been accompanied by a break below the support level at 139.84, signaling further downside potential. With the next target set at the 138.42 support level, the US dollar is likely to continue facing selling pressure against the Japanese yen.

Looking ahead, market participants anticipate a continuation of the downward move in USDJPY. The next target of 138.42 represents a significant support level and could attract additional selling interest. If the pair manages to break below this support level, it would signal a further intensification of the downtrend and potentially open the door for additional declines.

However, it is important to note that currency markets are prone to fluctuations and reversals. Immediate resistance for USDJPY is currently situated at 140.50. Only a break above this level would indicate a potential completion of the ongoing downtrend. Such a scenario could lead to a relief rally for the US dollar, but it would require a substantial shift in market dynamics and sentiment.

In conclusion, USDJPY has extended its downward move, breaking below the 139.84 support level. The currency pair is likely to face further declines, with the next target set at the 138.42 support level. Immediate resistance is situated at 140.50, and only a break above this level would suggest a potential end to the current downtrend. Traders should closely monitor these support and resistance levels, as well as key market factors, to gain insights into the future movements of USDJPY.